Alan Stevens - AWAH - Libertarianism, Freedom.
STATE FINANCES, INFLATION AND DAVOS
Another two years of dysfunctional government activity across the West has greatly weakened state finances and societies. Time may be running out for the Globalist WEF/Davos planned Great Reset, at least outside the EU (and the old Commonwealth).
About a year ago I wrote a post explaining that the coordinated decision to lockdown societies’ productive sectors would speed the already apparent system failure of ‘big government’ into its closing stages. This is an update.
To recap, the vote motive forces politicians to offer more and more sweeties to their spoiled electorates. The cost of all their promises endlessly to tax and spend became unaffordable some time ago. As productive, responsible behaviour is discouraged, irresponsibility and dependency become the norm for more and more people. I describe our current regime as Democratic Socialism. It is rapidly tending towards socialism, corporatism, fascism, technocratic managerialism or plain communism – whatever you want to call it. But under any guise, the modern state has outed itself as the ‘unsustainable’ enemy of the good.
Increasingly the divide it is going to be between ‘commies’ and ‘normal people’. The latter include not just libertarians but also anybody who just wants to be left in peace by the state’s proliferating social leeches.
A NOTE ON THE DAVOS CROWD
Which brings us to the Globalist Uber-leeches in the World Economic Forum (WEF), informally described as the ‘Davos Crowd’. This is a gathering of the great and the good. What they have in common is that they all use state power, wielded by political ‘leaders’ and parties, to transfer wealth upwards to themselves as self-appointed global elites. The WEF has a website which explains that in 2030 ‘You will own nothing and you will be happy’. Plus, you will not eat meat (‘no steak for thee, only for me’) and other instances of sanctimonious tyranny. These people are not hiding their intentions.
The Davos Crowd includes billionaires, CEOs of many major corporations, including Big Pharma, Big Tech and Legacy Mainstream Media, as well as UN, WHO, EU and other officials, both elected and not. They monopolized power and accumulated wealth in the post-war world. They really, really want to go on doing so.
They prospered through taxation, and by introducing regulations via international treaties - including free trade’ agreements - to rig markets, and through money creation scams (see my www.awah.uk post ‘Cantillon Effect: Finance displaces Productive People’ for how that works), and through big projects to strip-mine societies. UK examples of which include, HS2, CrossRail, government IT projects, MOD procurement, the NHS and Covid jabs.
What unites them is fear of losing their power. Their almost inexhaustible complacency and arrogance found the Brexit Vote and Trump’s election in 2016 profoundly unsettling. If 2016 was Star Wars Episode IV ‘A New Hope’, we are in Episode V ‘The Empire Strikes Back’.
Is the Davos crowd running an active conspiracy? It is just as likely that these are just powerful factions that work together based on a common set of anti-human human values.
GOING BUST – GRADUALLY AND THEN SUDDENLY
Either way, their partner states are now well into ‘coffin corner’ (a flying term introduced in www.awah.uk post ‘Lockdowns are pushing States into Coffin Corner’), and approaching the inevitable stall at the end of the democratic socialist state’s trajectory. The WEF Great Reset can be seen as an attempt to protect the Globalist elites as states blow up and public confidence evaporates.
Government finances have depended for years on borrowing heavily to pay for out-of-control expenditure on buying votes and feeding greedy bureaucratic and corporate vested interests. In the last decade, Western central banks reacted by creating new money units to drive interest rates down to very low levels to make government debt ‘affordable’.
The European Central Bank (ECB) drove interest rates down to below zero, while the Federal Reserve and Bank of England followed it downwards a couple of percentage points behind. Bond buyers in Germany, to take the worst example, in effect pay around 0.5% of the money they lend to the German government to that same government every year!
Meanwhile inflation – stoked up by Central Banks - has continued to reduce the value of the regime currency units in which repayment might be made one day. Governments have merrily piled up debt to expand their by-definition unproductive public sectors, while experiencing steady or falling interest costs on their growing debt.
BUYING PEACE IN LOCKDOWN HELL
Everything has speeded up and indeed fundamentally changed over the last two years. Something like 40% of all the US dollars in existence now were created out of nothing, out of thin air, in just the last two years by the Federal Reserve. The picture is similar or worse for the European Central Bank (ECB) and fellow-travellers, such as the Bank of England.
This money printing help explain how the Covid-19 lockdowns were implemented without much resistance. Without it, the unprecedented 10% fall in in UK GDP caused by lockdowns would have translated into millions of very angry people.
Politicians resorted to massive public spending as tax revenues plummeted. This kept the ‘zoom classes’ fat, happy and relieved not to be wasting their energies on commuting. The slump in the economy had little effect on their living standards because people were paid out of government money printing. That didn’t show up in rising inflation, partly because many people saved their commuting costs and didn’t get out to spend. Indeed, there is a hint in the current lockdowns on the Continent of another attempt also to manipulate inflation statistics by keeping people out of the shops.
This is in addition, of course, to the main functions of the lockdowns and jabs which are to control society, repress civil disobedience, and reward Big Tech and Big Pharma political donors. It has been alarming to see useful people who get things done in physical reality thrown under the bus by self-satisfied public and corporate bureaucrats. But this callousness has only been practicable because of rampant money creation which let governments go on borrowing and spending on their pet constituencies.
Bizarrely, many in the bureaucratic and corporate classes seem to think that society is a machine can be switched off during an alleged emergency and then started up again – just like a machine. It isn’t. Society depends on confidence and trust. Productive capacity has been irresponsibly destroyed. It won’t come back easily. When the money printing ends, as it always has historically speaking, the zoom classes will not be in a good place either.
CENTRAL BANKS ARE NOW THE ONLY BOND BUYERS
Two things have really changed. Firstly, it used to be the case that investors were compelled to buy bonds at artificially low yields forced down by Central Banks pushing money into bond markets to depress interest rates. For the last two years the central banks have created money to buy bonds accounting for all of states’ net borrowings.
Because Central Banks are the remaining net buyers, there are no longer functioning bond markets in the West anymore. Not at these low interest rates or anywhere near them. That is a big change with serious implications. Central Banks, commercial banks and pension funds are now stuffed with bonds which will be worth little when markets reset rates.
Central Banks are trapped. It they stop creating increasing amounts of government currency units, bond prices will fall a lot. If bond prices fall, interest rates automatically rise because interest payments on devalued bonds come to represent a higher yield on the reduced value of the principal. Suddenly governments could be faced with unaffordable interest costs on rolling over their out-of-control debt.
But if Central Banks keep printing money to prop bond markets up a bit longer, still more inflation will ensue later on. When the money printing ceases, the shock will be still greater.
INFLATION IS NOT TRANSITORY
The second change is that consumer price inflation is back. For several years money creation just pushed up asset price bubbles in bonds, shares and property. Little money left the canyons of Wall Street and other financial centres. Money that did filter down was soaked up by inexpensive East Asian exports to the West. Manipulated government statistics kept what price inflation there was down to apparently low levels.
But now the dam is bursting. The lockdown folly undermined fragile global supply chains, especially from Asia. It also reduced the production of goods and services in the West’s contracting economies. The globalist obsession with the climate change ‘crisis’ narrative is now also being used to introduce socialist control of transport and investment decisions. This makes any increase in output unlikely. Less production and more money creation means more inflationary pressure. More inflation eventually means higher interest rates.
The Davos controlled EU (and under Obama/Biden, US) bureaucratic elites are making inflation worse by suppressing hydrocarbon energy production. At the same time, they are inveterate Russia bashers – how else to justify a $1 trillion annual NATO ‘defense budget? It is the biggest deep-state strip-mining project of all. In Europe gas supplies from Russia via Gazprom’s newly completed Nordstream II are being obstructed by the energy starved EU. Bizarrely at the same time as the US is relying on record high oil imports from Russia.
The point about all this is that there is going to be a lot of inflation. That will push up market interest rates, unless Central Banks ramp money printing up to buy even more bonds. But if they do that, inflation will soon rise even more, making the eventual level of market clearing interest rates impossibly high for governments to afford.
Germany is the bellwether. Its recently cobbled together Green and Socialist governing coalition is determined to do Davos’s bidding by completing the creation of the EUSSR. Eliminating national vetoes will further weaken elected national governments. German savers may have been told that this means that Germany will be running the EU, but soon enough they will realise that they will merely be servicing Club Med country debts.
Meanwhile, they are getting minus half a percent interest annually. Inflation has already reached 6% and is likely to go higher. Energy costs and reliability are increasing problems. Almost unbelievably the new government proposes to close the remaining nuclear power stations that saved Germans from freezing last winter.
A SNAPSHOT OF SWOLLEN STATE SECTORS
I have reproduced below a table from a recent excellent article by Alistair Macleod at Goldmoney.com, showing how unbalanced the finances of various states are after two years of folly. I provide a link to the original article below the table.
Goldmoney Article link:
The table above suggests that the Welfare State is bust, especially in Europe. Everything is pushing up the resources consumed by the state. Two years ago, France’s public sector was at an already high 57% or so of its total recorded economy, described as its Gross Domestic Product (GDP) in its National Accounts. Now it’s 62% and the trend continues upwards.
It is highly questionable whether 57% of useful goods and services in France in 2019 were produced by the public sector. Little state activity is subject to any market test of value. Crucially, the French State cannot service its debt by offering creditors state ‘output’. It is generally quite unmarketable. It cannot be converted into cash in lenders’ pockets.
That means that the heavy lifting in terms of paying interest on government debt is all down to the productive sector which actually makes making marketable goods and services. Debt burdens would be bearable if the productive sector were 90% of society, not less than 40%.
Before the First World War this was the case. Britain, America and even France were relatively libertarian or ‘free market’ economies. State sector spending and taxation accounted for around 10% (give or take) of activity. The UK was able to pay interest comfortably on a more than 100% of GDP state debt taken on to defeat Napoleon. That is because the interest payments were less than 5% of thriving private sector output.
Scroll forward to the swollen French State of 2021. Now just under 38% (100%-62% state ‘activity’) of society is productive. That minority is stuck with a very big relative burden. The French state sector is more than 1.6 times the size of its productive sector, up from around 1.3 times two years ago. As the state sector grows further it quickly becomes a bigger and bigger relative burden on productive people.
As the table shows, other countries in Europe have joined France in having high debt loads and state burdens in relation to shrunken private sectors. Germany is still the least dirty shirt in the EU pile, but its government is doing everything it can to change that by making German savers support the debt load of those other countries.
The US is badly indebted too. But the viable low-tax US states at least have a realistic option of secession to avoid paying for the lunacy in Washington, the North East and California.
What would happen, hypothetically speaking, if Euro area Central Banks were forced to allow interest rates to rise in line with inflation? They might rise to say 5%? But that is still likely to be well below future inflation. Given rising inflation, and the evident risk of default, investors should hold out for 10% or more.
At 5% - 10% interest rates, France’s annual interest payments on state debt would rise, from very little currently, to 6% - 12% of GDP. Annual state expenditure would rise to the 70% region of recorded French GDP. But only the small private sector actually pays for state spending (for more on why tax is only ever paid by productive people see www.awah.uk post ‘The Fallacy of Redistribution through Taxation’). An increase in the state’s share to around 70% of GDP would push the annual output of France’s diminished marketable goods and services sector down by 20% (38% down to 30%). That is the real test. It may be too big and politically dangerous a response for the state to attempt. What are the options?
The only alternative is to default on the debt and jettison unaffordable promises. In particular public pensions, but also private pensions, would take a big hit. The latter are heavily invested in ‘safe’ government bonds which stand to converted into ‘undated non-interest bearing obligations’ (Central Banker code for ‘defaulted on’). Anyway in 2030, as the Davos/WEF site explains ‘you will own nothing’ including, er, your pension.
The attraction to Globalist elites of the Davos Crowd’s Great Reset has precisely been the opportunity to establish police states under cover of mass hysteria induced by the Big Pharma Covid-19 propaganda narrative. Only then, they think, could bonds, bank deposits, private and public pensions promises and other liabilities be safely liquidated.
For this to work, everyone has to have a digital vaccine passport, and Central Bank Digital Currencies (CBDCs) have to be ready to fill the gap. They have not quite managed it yet.
Nevertheless, once everyone’s vaccine passport has been upgraded to handle the proposed but still embryonic CBDC, it really will be possible to make sure you don’t own anything. You won’t be allowed to buy any property. This is why the RNA ‘vaccines’ have to be administered to everyone, regardless of the escalating loss of life and health, to ensure the future CBDC coverage is 100%. That, and making sure no unvaccinated control group survives to reveal the declining health of repeatedly vaccinated and boosted people.
The Greek government has highlighted the link between the brilliantly executed Covid-19 ‘plandemic’ operation and the goal of defaulting on state promises. Greeks over 60 now have to get vaccinated. If they don’t then they will not get their state pensions. So the choice is 1) starve without your pension or 2) let Bill Gates and Big Pharma turn you into an immune-compromised pin-cushion, with a conveniently shortened life expectancy.
These are not good times for normal people who just want to be allowed to live their lives without being bullied and robbed excessively. But if you look at the situation from the point of view of the WEF/Davos Globalist billionaires and bureaucrats, it is not so promising. They hoped to create a literally world-wide bio-medical surveillance state. Then they really could centrally-plan the planet, relying on with fallacious Malthusian narratives of climate and resource depletion crises.
INITIAL GLOBALIST SUCCESSES
The WHO-coordinated simultaneous global Covid-19 propaganda campaign has indeed put a large proportion of western populations into mass psychosis. It did prepare the ground for widespread acceptance of totalitarian controls, complete with scapegoating of an innocent minority. This time it is the unvaccinated rather than the Jews or the Bourgeoisie.
It’s no accident that the Covid-19 response, most noticeably in the case of the UK’s SAGE advisory group effort, was handled by precisely the behavioural psychologists and mathematical modellers a sustained propaganda campaign would need. Epidemiologists would only be needed if Covid-19 were about public health, which it never was.
Meanwhile, the mainstream media, which is owned by a small number of global corporations, has been completely bought and silenced (not to say discredited). Big Tech has censored the internet to suppress dissenting sources of information, with mixed results, in return for the chance to manage the complicated but lucrative CBDC IT project. In general, western corporations, which are generally WEF/Davos members with a long history of profiting from government largesse rather than entrepreneurial efficacy, have blithely supported and imposed vaccine mandates, thus doing the politicians’ dirty work for them.
POPULAR WILL AND THE SILENT MAJORITY
The politicians who have fronted up Davos’s schemes during the ‘plandemic’ can therefore count on a pro-police state voting bloc. It is bigger than the increasingly exasperated and worried anti-police state minority opposing medically unjustifiable vaccine mandates.
Between the 30% or more of the population which is brainwashed and often frankly tyrannical, and the independent thinkers, there is probably a block of 40% to 50% of ‘silent majority’ types. They have been keeping their heads down, and ‘going with the crowd’. That currently means the pro-lockdown, pro-vaccine mandate narrative maintained by state policy and propaganda. The growing ranks of the free thinkers are outnumbered.
There are two main human survival strategies. Going with the crowd versus thinking for yourself. The latter is more or less a pro-liberty position because individuals who are good at it thrive in free societies. History probably hinges on which of the two social minorities - supporters of tyranny or the free thinkers – manage to persuade the silent majority that their cause is that of the crowd. It has been different in different epochs.
If the state can be represented as tyrannical, free-thinkers can convince the silent majority that its cause is that of the ‘crowd’. That seems to have happened at the time of the English and American Revolutions of 1688 and 1776. The role of writers such as Locke and Paine, and of documents like the Declaration of Independence was key to convincing the silent majority that they were with the ‘right’ crowd. The result was two centuries of progress.
One could say that the silent majority defected from liberty during the nineteenth century under the influence of Marxist thought leaders. The capitalists became the designated tyrants. The world was ‘demonstrated’ by Marx to be automatically heading towards socialism anyway. This was ‘The Science’. There was a direction to history. Going with the crowd meant taking the Progressive path to the big-state.
Now we are at another inflection point. Davos is pushing a revived doctrine of totalitarian control as a way to save globalist bureaucratic and corporate elites who are well aware that Democratic Socialist States are unviable. Totalitarian regimes are however tyrannies. If the silent majority realizes that this is not about health but is about the looming tyranny then it may flip back to supporting believers in liberty. In that case the future will be much rosier.
DAVOS CROWD SUCCESS IS INCOMPLETE
In terms of establishing the bio-medical terror surveillance state and paving the way for vaccine passports with Central Bank Digital Currencies, the Davos crowd has indeed made excellent progress in the EU. Most member countries are in the process of introducing economy-wrecking lockdowns, vaccine mandates and anti-unvaccinated discrimination. It is all similar to the early stages of the German treatment of the Jews in the 1930s. So far, EU populations seem to be reacting as though this is a matter of public health rather than tyranny – although there is a great deal of unreported civil disobedience.
Yet, even in the EU hope is not extinct. Austria led the charge towards compulsory vaccine mandates. But it is now on its third Chancellor in a month, and apparently the government has suggested it might be time for talking to (rather than bullying?) its jab-free citizens.
By the way, does anyone know why the Germans and the Israelis are leading the totalitarian rush to large scale medical experimentation? Ursula von der Leyen, the German President of the European Commission, has reportedly suggested suspending the Nuremburg Code. It was formulated precisely to stop Germans sticking needles in people without their consent, especially Jews. Given their history, both peoples should know better.
In any case, despite the clamp down on EU populations, and in the supine old or ‘white’ Commonwealth nations, the WEF scheme is not having everything its own way. The Covid-19 story has been much less successful in more sceptical, pro-liberty America.
The Obama federal administration, fronted by the corrupt and senile Joe Biden and the inept Harris, is a creature of Davos, as are many but not all Democrat Congressmen and ‘leaders’ in Democrat or ‘blue’ states. Blue states like New York have gone just as barmy over Covid-19 as any EU jurisdiction.
But Democrat control of Congress is tenuous at best. It is likely that they will convincingly lose in both houses in the mid-term elections next November. Whilst there are plenty of pliable and compromised RINOS (Republicans in Name Only), the Davos elites have to reckon on losing control at the federal level within the year. Hence the hurry to try to pass ‘Build Back Better’ legislation which is a template for socializing, and crippling, America.
The USA has deep roots of dissent. It was born in secession and rebellion. It still has a decentralized political structure and an extant series of protected freedom – including the right to bear arms. The latter is gaining in popularity there, rather than the reverse. It also has much more respect for free speech and a wider range of independent media.
The more pro-liberty freer thinking Republican or ‘red’ states, led by Florida and Texas, have convincingly rejected the Covid-19 narrative. Migration by productive people and companies from bureaucratic high tax blue states to red states is making the latter more solidly conservative and indeed libertarian.
Red state leaders are using the more decentralised US legal and political system to challenge Federal Government over-reach. Crucially there is rump of 70 million or so not-so-silent-majority disillusioned Trump voters. They have abandoned trust in the political system, and are candidates for alliance with the free thinkers.
In America therefore, the RNA vaccine-based WEF police state narrative is struggling. The issue is being defined correctly in terms of tyranny rather than public health, and loyalties are becoming attached to state jurisdictions, which can and may secede.
DAVOS IS NOT GOING TO ACHIEVE GLOBAL GOVERNMENT
Davos’s underlying problem is that it wants to create Global Government. These people think that totalitarian technocracy (aka fascism and especially communism) only failed before because it couldn’t achieve global control. Only old-money mainly European Globalists could really be dumb enough, or callous enough, to think this way. They want the USA broken as the world superpower so that they can transfer power and capital flows back to Europe and then pass control over both to the UN.
At one level the increasing likelihood of internal conflict and/or secession from federal government control in America is good for Davos because it removes the US as a viable rival to the EU and, ultimately, the UN. Plus, like all Marxists, they revel in destruction and fantasise about heroically ‘building back better’ after their little bonfires.
At another level, however, a distracted USA leaves Davos with no means of tackling Russia, China, and indeed swathes of the developing world too. Russia and China have both told Davos to get lost (see www.awah.uk post ‘Putin says No to the Great Reset’). They may not be models of libertarian virtue, but they have at least avoided deploying the untested RNA jabs by promoting their own much less hazardous conventional vaccines.
Recently at the farcical Cop26 climate change conference in Glasgow, Russia and China, along with India, also helped pull the plug on WEF dreams of global green governance.
Africa is doing its bit by demonstrating that with practically no vaccination comes practically no Covid-19 mortality. Could it be because they are all chomping ivermectin as an anti-parasitical drug that they don’t suffer from Covid-19 anyway? Or is it because it is the vaccinated in the West who are falling ill? If the RNA jabs were in fact depopulation weapons, it would be ironic that the population that the Davos Crowd is most likely to harm is its own already declining European population, whilst leaving Africa and India’s buoyant populations unscathed.
For Davos, there is little point in creating a WEF globalist bio-medical totalitarian state which only includes the EU(SSR) and a patchwork of clapped-out elderly Anglo-Socialist jurisdictions. That would be only 10% of the world’s population. That’s not what ‘globalists’ want. They need more to preserve their faltering elite power positions in the face of gathering worldwide decentralization and non-Western progress.
The WEF/EU needs war between America and China and Russia. See the film ‘The Sum of all Fears‘, for an entertaining dramatisation of this craziness – and indeed the incomparable ‘V for Vendetta’ for the prototype Covid-19 plandemic itself. The idea is that, with the US and Russia/China in ruins after such a war, the EU would then ‘win’ by being the last man standing. It would transfer control of the new global technocracy up to the shambolic UN as the new world government. This scheme, of course, is hopeless on so many levels.
Fortunately, however, the US is in no position, technologically or morally, to stand any chance of prevailing in either Eastern Europe or the Taiwan Strait, still less both. Russia’s hypersonic and surface to air missile capability is far ahead of the West’s. Unless the Americans resort to nuclear weapons there is no way they can ‘win’. Hopefully this reality is understood, and reflected in President Biden’s seeking a summit meeting with Putin.
The problem for the Globalists is that they cannot get their war without the EU going down too. Russian policy has changed in the last few months. It’s increasing confidence and awareness of the West’s weakness has encouraged it to lay down real ‘red-lines’. In particular, Western Deep-State adventures in the Ukraine are out of the question.
Globalists now know that the Russian response to, say, an attack on the Donbass will not be limited to the Ukraine. The Russians can, and will, take out NATO assets across the EU, and retaliate against the places in the West pulling the Ukraine regime’s strings. These potentially include Brussels, and the Globalists’ own comfy residences.
The picture from the point of view of Europeans who are suffering under the jack boot of the nascent Fourth Reich may be discouraging. But Davos faces failure in its key Global Great Reset. It may well be running out of time to manage the reset their way.
One senses a dawning realisation on the part of some politicians, CEOs and bankers, especially on Wall Street, about just how wrong and dangerous the Great Reset is. There may be a de facto alliance operating, at least in American political and financial circles. The aims? These may be to obstruct America’s Davos trolls in Washington, to avoid superpower warfare, and to bring down the Globalist citadel that is the EU.
China and the US are running (relatively) strong currency policies which may wreck EU bond markets. A Globalist attempt to get rid of Jerome Powell at the Federal Reserve has failed. As soon as he was reconfirmed, he got right back to putting pressure on the ECB by draining Europe of dollars through the Federal Reserve’s ‘Reverse Repo facility’. He also declared that inflation is not ‘transitory’, thus badly wrong-footing Christine Legarde at the ECB.
And that, to get back to the point of this post, is the truth. Stagflation is back. Deliberately or otherwise, the states of the West, especially our unlucky former EU partners, have crippled their productive sectors. A mass of freshly created government currency units is being fire-hosed on to comatose economies. And now most of the EU is brilliantly closing down and going back into lockdown over the mainly harmless Omicron Covid-19 variant. Some sort of crisis in Davos’s EU heartland cannot be far away.
PEAK DAVOS AND ITS LONG-TERM FAILURE
Davos reminds me of the Third Reich’s forces outside Moscow in late 1941 (part of another Germanic Eugenicist project). All seemed bleak. The Nazis had had two years of remarkable success based on careful preparation, and a determination to use any means possible to win. But it was not enough. And the resources of an indebted and overloaded European economy are not going to be enough this time either. Though the subsequent years of scorched earth retreat are again going to be very difficult for many people.
As Davos stalls geopolitically, other elements of its scheme will also unravel. The underlying thesis of the WEF plan was that you could establish a police state based on the virus narrative. You could then achieve the controlled demolition of unworkable and bankrupt Democratic Socialist regimes. But that assumes that when you put people through so much FUD (Fear, Uncertainty and Despair), and then take their pensions, benefits and indeed heating and cars from them, they will remain compliant. Really? The alternative view is that the police state will just out itself as a tyranny and an incompetent one at that, and fail.
A big part of the incompetence will be not just the failure to prevent defaults or economic contraction, but also to create viable currencies. The CBDCs are still a work in progress, but even if they were ever issued, they would collapse in value almost immediately. Meanwhile we already have Bitcoin as a working private store-of-value money. Yes, Davos can promote Ethereum as a much inferior product – but that is already a sign of their weakness. Meanwhile there are plenty of other Store-of-Value Coins with better privacy than Bitcoin.
Let us also not forget just how much gold – the other store of value ‘coin’ – Russia and China have. If there were a race to rebuild based on state sponsored sound money, then success would certainly not go to the discredited Western Keynesian easy money policies.
BIG GOVERNMENT IS UNATTRACTIVE AND UNCOMPETITIVE
In a way the crypto-currency story is just a microcosm of the underlying reality that competition works against statists. State dominated societies cluttered up with callous and unproductive corporations and bureaucrats are just plain unattractive and unproductive.
They will be outcompeted in the longer term. Productive and cooperative people with a lot to offer tend to leave such places and go to friendlier shores. Davos may create a patchwork of tyranny in places, but those territories will wither away, if they don’t revolt.
You could say that the paragraph above is a libertarian restatement of the WEF’s own view that they need global government if they are going to keep their power. They won’t get it.